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Corrective Week in the Grain Markets

April 15, 2011
 
 

This information is provided by Archer Financial Services, Inc. 800-933-3996.

May corn saw a price setback of nearly 30 cents and soybeans and wheat pulled back over 50 cents each. 
 
One of the biggest market features this week was the corrective action of the July/December corn spread.  That spread closed nearly 40 cents off of the high that it made on Monday. 
 
The market focus over the past several months has been on rationing of old crop corn supplies which had driven that spread towards historically high levels, however as this week progressed concerns began to develop regarding early season planting weather. This resulted in a sizable correction in this spread. There may be more give to this spread in the short term if the weather forecasts remain wet, before it once again begins widening out on supply concerns. 
 
As of Tuesday, the funds were aggressive buyers of corn, however the late week sell off in old crop corn values likely means that those very same funds were reversing that position. As long as the forecast remains troublesome for Midwest planting progress, look for new crop corn values to continue seeking out new contract highs as it did late this week.
 
The top of our expected trading range for December corn is at $6.90.

 

4 15 11 Prices

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4 15 11 Market Table

 

4 15 11 COT

(click to enlarge)

 

 

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COMMENTS (1 Comments)

PullMyFinger - Chappell, NE
CORRECTIVE week??!!!! Then I guess we're due for a corrective month at the diesel pump.
9:12 AM Apr 17th
 



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